Daily Market Commentary: Reversing Yesterday's Gain with a Bigger Loss
It proved to be an ugly day all around. Yesterday's recovery rallies were quickly taken out with today's heavy losses. Attempts to find support at 50-day MAs and/or channel support were pushed aside. However, these losses have some way to run before August swing lows are challenged. The S&P could look to mount a new rally, although I suspect it will struggle to get close to 1,987. If it can't move above its 50-day MA, or finds resistance near this moving average, then shorts will have an entry opportunity for a push down to August swing lows and/or 200-day MA.